Question

there is a negative relationship between price of a commodity and quantity demanded. "explain the statement with the help of utility analysis method.

Answer 1

Any product's manufacturing quantity and it's price estimation is made, with the help of the demand of the product in market. If some product has a great demand, then the price can be dropped, because of bulk production.

But when the demand is not much then, if the retail price of the product is high then automatically it will result in more loss of demand of the product.

Answer 2

Explanation:

According to law of demand , when other things being equal , there is an inverse or indirect relationship between price of the commodity and its quantity demand. It means demand for commodity increased with decreased in Its price and demand for the commodity decreased with increase in Its price